Failure to Report and Investigate Alleged Misappropriation of Resident Funds
Penalty
Summary
The deficiency involves the facility’s failure to implement policies and procedures to ensure reporting and investigation of a reasonable suspicion of a crime, specifically an allegation of misappropriation of a resident’s money by a CNA. A resident, who was his own decision-maker and able to clearly articulate his needs, reported that he had loaned a CNA a total of $500 in cash over a weekend, with a verbal agreement that she would repay him every paycheck. He stated that the CNA initially repaid only $30 and that he became upset when she did not abide by their agreement, although she later returned the remaining $470. The resident’s medical record, which included diagnoses of diabetes, atrial fibrillation, hypertension, chronic kidney disease, anxiety disorder, and major depressive disorder, contained no documentation of any allegation or follow-up regarding misappropriation of money. Another CNA reported overhearing the resident and the CNA arguing in the resident’s room with the door closed, during which the resident yelled that the CNA had agreed to pay him $30 every pay period and had not done so, and that she had until the end of the week to pay the balance or he would report the incident to the Administrator. The CNA who left the room was observed to be visibly crying. The Social Work Director stated that around December the resident had described loaning money to a “good employee” to pay a ticket, with payment arrangements that were not being honored, and that she informed him she would have to report this allegation to the Administrator/Abuse Coordinator. She stated the resident reported misappropriation of funds and it was assumed this was reported to the State Agency. The Administrator acknowledged being informed of the situation multiple times but did not treat it as a reportable allegation of misappropriation. He stated that initially the Social Work Director told him the resident had given money to an employee but would not provide the staff name, and that at that time the resident was not alleging theft. He also learned at a resident council meeting that the resident had loaned money to an employee with payment terms, and later received a phone call from a nurse again informing him that the resident had loaned money to the CNA, but he did not ask the nurse for further details. The Administrator stated there was no proof of the transaction and no allegation of misappropriation, and therefore no Facility Reported Incident was submitted to the state agency, despite the facility’s abuse, neglect, and exploitation policy defining an alleged violation as any observed or reported situation that, if verified, could indicate noncompliance with federal requirements. Staff, including the Staff Development Coordinator, confirmed that it was against company policy for staff to accept or borrow money from residents.
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